This article first appeared on GuruFocus .
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Revenue from Operations:INR 784 crores for the quarter.
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Enterprise Take Rate:8.08% for the quarter.
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Organic Business Take Rate:6.04% for the quarter.
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Classic Vacations Take Rate:24.94% for the quarter, including a 12.4% commission component.
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Gross Profit to Adjusted EBITDA Conversion:23.7% for the quarter, compared to 25.3% in Q3 FY25.
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Organic Business Gross Profit to Adjusted EBITDA Conversion:25.3% for the quarter.
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Classic Vacations Gross Profit to Adjusted EBITDA Conversion:19.6% for the quarter.
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Enterprise GTV to Adjusted EBITDA Conversion:Improved to 1.18% in Q3 FY26 from 1.05% in Q3 FY25.
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Classic Vacations GTV to Adjusted EBITDA Conversion:2.46% for the quarter.
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Release Date: February 11, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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TBO Tek Ltd ( NSE:TBOTEK ) successfully integrated Classic Vacations into its financial and operating matrices, expanding the scale of its platform.
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The air business showed strong recovery with a 16% year-over-year growth on an organic basis.
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The company maintained a stable gross profit to adjusted EBITDA conversion rate, indicating operational efficiency.
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Cross-selling between TBO and Classic Vacations has begun, showing promising early signs of success.
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TBO Tek Ltd ( NSE:TBOTEK ) expects significant operating leverage and margin expansion in the upcoming quarters, particularly in its organic business.
Negative Points
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The integration of Classic Vacations adds complexity to TBO Tek Ltd ( NSE:TBOTEK )'s financial metrics, making comparisons challenging.
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There is a distortion in numbers due to Ramadan, particularly affecting the Middle East geography.
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Depreciation and finance costs have increased due to the Classic Vacations integration, impacting financial results.
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Forex impact remains a concern, although hedging practices have been introduced to mitigate risks.
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The take rate for the airline business is not fully controllable, leading to potential fluctuations in revenue.
Q & A Highlights
Q: How is the air business performing, and is the growth rate sustainable? A: Ankush Nijhawan, Co-Founder and Joint Managing Director, stated that while they do not provide forward-looking statements, the momentum in the air business is expected to continue into Q4.
Q: How is the integration of Classic Vacations progressing, and are there any early signs of cross-selling? A: Gaurav Bhatnagar, Co-Founder and Joint Managing Director, mentioned that TBO selling to Classic has started with promising early signs. Classic buying from TBO is becoming significant, and TBO buying from Classic will begin soon. The overall platform migration is a complex project expected to take several quarters.
Q: With the integration of Classic Vacations, should we expect depreciation and finance costs to stabilize? A: Vikas Jain, Chief Financial Officer, explained that the current quarter includes debt and amortization costs for the PPA provision. These costs are expected to remain steady as the PPA study is provisional but not anticipated to change significantly.
Q: How are forex impacts being managed, and are there any changes in policy to reduce this impact? A: Vikas Jain noted that the forex impact has reduced year-on-year. The company has started hedging practices post-Q4 last year, which involves some costs. The forex line includes hedging costs, MTM impacts, and revaluation of foreign currency loans.
Q: What are the expectations for EBITDA as a percentage of GTV over the next few years? A: Gaurav Bhatnagar explained that while EBITDA as a percentage of GTV can fluctuate, the focus is on EBITDA as a percentage of GP, which is a more consistent measure. The company expects this metric to improve over time.
Q: How is the company addressing the impact of Ramadan on the Middle East geography? A: Gaurav Bhatnagar stated that while there will be monthly deviations due to Ramadan, the full quarter impact is not expected to be material as it falls within the same quarter.
Q: What is the company's strategy regarding direct sourcing, and how does it impact margins? A: Gaurav Bhatnagar mentioned that direct sourcing is higher in Classic Vacations at 80-85%, compared to TBO's 40%. Direct sourcing aims to reduce dependence on third-party suppliers and improve margins over time.
Q: How does the company view competition in the market, both in India and internationally? A: Gaurav Bhatnagar noted that there has been no significant change in the competitive landscape recently, with competition remaining consistent across geographies.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
